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IRS braces for $500bn drop in revenue as taxpayers skip filings in wake of DOGE cuts at agency
The IRS anticipates a $500 billion revenue drop due to taxpayers potentially skipping filings following Department of Government Efficiency (DOGE) cuts, which have downsized the IRS by nearly 20%. Taxpayers are reportedly betting on reduced audits. IRS officials warned about staffing cuts, while former commissioners cautioned that reductions would make the IRS "dysfunctional." Other factors, like wildfires, could also contribute to delayed filings, but are not seen as the primary reason for the anticipated revenue shortfall.
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